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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Home value question
When DH and I were looking for a house in 2012, we found one that I LOVED (in Commack) and for several reasons, we lost out on it. At the time, it was priced at $495K - which seemed to be a reasonable and fair asking price and was in line with what we were seeing at the time.
I think that if anything, the market has either stayed about the same or gone up since then. But, I was just looking on MLSLI and redfin and see the house is up for sale again - now for $349k?!?!?!? Seems incredibly strange for a house to have dropped in price by that much in the current market, and in such a short time.
Anyone have any thoughts on why this could be? (The listing says it's in contract, so even if I wanted to look into moving, it's not an option, but just really curious about it)
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Posted 2/14/17 12:06 PM  |
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jamnmore
LIF Adult
Member since 6/16 989 total posts
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Home value question
We bought our home in 2012. The previous owners bought it in 2011 and paid more in 2011 than they listed for in 2012. They needed to get out and priced it to sell.
Could be that in 2012 the owners owed a lot more than the current owners and that is why it is priced where it is.
I don't think that sale or listing price has much to do with value.
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| Posted 2/14/17 12:17 PM |
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Re: Home value question
If the house you're referring to is the 3 bd/2 bath Ranch on MLS, according to Redfin its a Short Sale.
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| Posted 2/14/17 12:24 PM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: Home value question
Posted by jamnmore
We bought our home in 2012. The previous owners bought it in 2011 and paid more in 2011 than they listed for in 2012. They needed to get out and priced it to sell.
Could be that in 2012 the owners owed a lot more than the current owners and that is why it is priced where it is.
I don't think that sale or listing price has much to do with value.
I get what you are saying, but other, similar style homes in the area are listed at much more than $349K. The house was in excellent condition when we looked at it and from the pictures, still looks like it is. The house sold in 2012 for $495K - just seems very strange that it would now be listed (and in contract) for $146K less, especially given the current market
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| Posted 2/14/17 12:25 PM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: Home value question
Posted by EclecticEsq10810
If the house you're referring to is the 3 bd/2 bath Ranch on MLS, according to Redfin its a Short Sale.
No, it's not that house - it's a 4 bd, 2 bath split
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| Posted 2/14/17 12:26 PM |
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BlueDiamonds
mommy to 3 boys
Member since 2/07 3885 total posts
Name:
proud mommy
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Home value question
have you looked on zillow? they give a price history for houses and you might get a little more info on there. not sure what the reason could be, unless something happened to the house or the people really need to get out.
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| Posted 2/14/17 1:12 PM |
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Home value question
My guess would be that there may be a large underlying issue that came out when they tried to sell. For example, maybe when they purchased they missed termites, a foundation problem, or other large scale problem that can't be seen from the outside. Instead of fixing the issue themselves, they may have just discounted the house.
Or they just really wanted to get out. If I'm looking at the right house, it looks like there have been numerous price changes, and it had been listed for almost a year before going into contract.
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| Posted 2/14/17 1:22 PM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: Home value question
Posted by starbrightgirl8
My guess would be that there may be a large underlying issue that came out when they tried to sell. For example, maybe when they purchased they missed termites, a foundation problem, or other large scale problem that can't be seen from the outside. Instead of fixing the issue themselves, they may have just discounted the house.
Or they just really wanted to get out. If I'm looking at the right house, it looks like there have been numerous price changes, and it had been listed for almost a year before going into contract.
It's this house. I checked Zillow - good idea. Thanks. The price changes just seem so strange - the house has 2 new bathrooms and a nice, fairly new extension on the back. We never got as far as having an inspection, but everything seemed to be in good shape when we looked at it. $349K is extremely low for that house in that area. There is another house on the same block that is not updated at all, listed for $449K. Can't imagine what kind of problem the house could have for a $100K difference.
Also strange is that when we were looking (late 2011/early 2012), and we lost that house, they had another buyer - otherwise we would have gone back to it when the issue we had was resolved. Zillow says it sold in August 2012.  Oh well - maybe it all worked out for the best anyway!
Message edited 2/14/2017 1:37:34 PM.
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| Posted 2/14/17 1:34 PM |
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Home value question
There are a a lot off odd things about that listing. I think the websites just aren't telling the full story. Like according to Redfin, it's been under contract since May, but hasn't closed. That's 8 months. Also, the last price change was the day before it went into contract, which is odd. Why would they change the listing price when they were about to be in contract? Contracts don't happen overnight.
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| Posted 2/14/17 3:19 PM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: Home value question
Posted by starbrightgirl8
There are a a lot off odd things about that listing. I think the websites just aren't telling the full story. Like according to Redfin, it's been under contract since May, but hasn't closed. That's 8 months. Also, the last price change was the day before it went into contract, which is odd. Why would they change the listing price when they were about to be in contract? Contracts don't happen overnight.
Definitely something strange going on. Guess we dodged a bullet on that one 
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| Posted 2/14/17 4:46 PM |
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Re: Home value question
I looked it up for you. It's a short sale that's now under contract, pending bank approval.
The current sellers originally listed it for $524,489 (in July 2015), then dropped it to $489,000.
They must have had it priced high to try to eke out enough to have it not be short sale. When they couldn't sell at that price, and decided to go the short sale route, they dropped the price significantly to $349,000.
So I don't think it's anything to do with the house itself, but the seller's financial situation/lack of equity.
The problem that I often see with short sales is this: Listing agents/sellers usually have no idea what the bank who holds the mortgage (or banks) will accept, until they are presented with their first offer (which has to be in the form of a signed contract). So I see a lot of listing agents who will price a house WAY lower than market value to attract a quick sale to present to the bank. They know the bank is unlikely to accept that (because most banks want close to market value), but they want to get the negotiations going. So the bank comes back with a number, and even if the current buyer in contract won't come up to that number, the listing agent then has a much firmer idea of what the bank wants and can then put the house back on the market as an "approved short sale" at $x price (although as time goes on, the bank will order new appraisals and price opinions and may ask for more).
This is one of the many pitfalls that buyers need to be aware of when purchasing a short sale. If the price sounds way too good to be true, it is, and ultimately, it's probably not going to fly.
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| Posted 2/14/17 5:10 PM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: Home value question
Posted by Christine Braun - Century 21 American Homes
I looked it up for you. It's a short sale that's now under contract, pending bank approval.
The current sellers originally listed it for $524,489 (in July 2015), then dropped it to $489,000.
They must have had it priced high to try to eke out enough to have it not be short sale. When they couldn't sell at that price, and decided to go the short sale route, they dropped the price significantly to $349,000.
So I don't think it's anything to do with the house itself, but the seller's financial situation/lack of equity.
The problem that I often see with short sales is this: Listing agents/sellers usually have no idea what the bank who holds the mortgage (or banks) will accept, until they are presented with their first offer (which has to be in the form of a signed contract). So I see a lot of listing agents who will price a house WAY lower than market value to attract a quick sale to present to the bank. They know the bank is unlikely to accept that (because most banks want close to market value), but they want to get the negotiations going. So the bank comes back with a number, and even if the current buyer in contract won't come up to that number, the listing agent then has a much firmer idea of what the bank wants and can then put the house back on the market as an "approved short sale" at $x price (although as time goes on, the bank will order new appraisals and price opinions and may ask for more).
This is one of the many pitfalls that buyers need to be aware of when purchasing a short sale. If the price sounds way too good to be true, it is, and ultimately, it's probably not going to fly.
Thank you! As annoying as this is, at least it makes sense.
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| Posted 2/14/17 8:58 PM |
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